An Ounce of Prevention...
Reducing the input error rate is one of the
best ways to improve accuracy,
but few firms do it well. All the more strange
because the tools and procedures are simple old stand-bys from
Work Simplification and TQM: fishbone diagrams, process charts,
pareto charts, five why's and teams.
In some firms, Root Cause Analysis consists of
finding someone to blame. Real root causes are usually systemic;
not personal.
Root
Causes of Inventory Record Errors
The
fishbone diagram of figure 5 (a.k.a. Ishikawa chart, cause & effect
chart), shows some common inventory errors and their possible
causes. The red
envelopes highlight some of the more prevalent and overlooked causes
of errors. Dashed purple lines illustrate how any branch can be
expanded, digging further and further towards the real root cause.
This is
not a complete summary of causes; nor does it drill down to all root
causes. It is, however, a good starting
point.
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